While Seoul might have anticipated overseas monopoly concerns to be aired about the proposed merger between two of its largest shipyards it is on home soil where anti-competition fears are being voiced most loudly to date.
The Korean Metal Workers’ Union and union members from Daewoo Shipbuilding and Marine Engineering (DSME) yesterday submitted a petition to the Fair Trade Commission in Seoul, maintaining the merger between Hyundai Heavy Industries (HHI) and DSME undermines free competition and would create an oligopoly in South Korea’s shipbuilding industry.
“The merger between Hyundai Heavy Industries and DSME will take a toll on the current employment structure and the life cycle of the country’s shipbuilding industry,” said the union.
“Workers in the field have no choice but to be sensitive towards the merger.”
Splash data suggests HHI and DSME would command a global orderbook marketshare of 21%, a dominance never before seen in modern shipbuilding history.